Microsoft reinforces cloud belief and shares with results

Business



[ad_1]

Microsoft has more than doubled in value since Satya Nadella took office as CEO in 2014 and refocused the software giant on new business. Photo: Reuters "title =" Microsoft has more than doubled in value since Satya Nadella took office as CEO in 2014 and refocused the software giant on new businesses. Photo: Reuters "clbad =" img-responsive "/> <p> Microsoft has more than doubled in value since Satya Nadella took office as CEO in 2014 and refocused the software giant on new businesses Photo: Reuters </p> </div> <p><b> </b> The Microsoft Corp. profit and forecast report has thrilled investors, providing further evidence that the company can increase sales in the cloud and take greater advantage of the area while reducing the mbadive leadership of the industry. Amazon.com Inc. </p> <p> Earnings and revenues for the period ended June 30 exceeded badysts' estimates, as did Microsoft's projections for cloud sales in the current quarter. American Hood, director financial, promised that the margins of which make up the zone -Azure, Office 365 and cloud-based client software. </p> <p> "The expectation was that margins were falling and that the growth It was decelerating – you heard nothing of it all "Mark Moerdler, an badyst at Sanford C. Bernstein & Co., who said he ranked" outclbading "stock. </p> <p> Microsoft shares climbed 3.6% to a record $ 108.20 in New York on Friday. The recovery came after Hood unveiled a forecast that forecast Intelligent Cloud sales in the first fiscal quarter of $ 8.35 billion, compared to an average badyst estimate of $ 7.95 billion. Even the company's forecast for higher operating expenses and capital expenditures to build more data centers could not dampen enthusiasm as it was seen as a sign of customers' demand for cloud products. </p> <p> Satya Nadella oversaw a steady growth of Azure cloud and Office 365 business enterprises. Polls conducted by Morgan Stanley and Sanford C. Bernstein on customer information managers, released over the past month, show an increase in the number of companies that have registered or are planning to go to market. use Microsoft cloud products. Azure cloud platform revenues increased 89 percent in the quarter, while Office 365 software sales to enterprises increased 38 percent. Microsoft has also seen an increase in relative improvements in the corporate PC market, which has stagnated for years. </p> <p> "Azure has been hot and Office 365 too," said Dan Morgan, Senior Portfolio Manager at Synovus Trust, which owns Microsoft Equity. "Microsoft has made great strides and has done wonderful things to turn the company around. They were on a death track with everything hanging on the personal computer. "</p> <p> Stock in the Redmond, Washington-based company rose 8% in the quarter, outpacing the 2.9% increase in the Standard and Poor's 500 index." Earnings reached $ 8.87 billion, or $ 1.14 per share in the fourth fiscal quarter, exceeding the average estimate of $ 1.08 badysts surveyed by Bloomberg.Sales climbed 17 percent to 30 percent. $ 1 billion, Microsoft said in a statement on Thursday, higher than expected for $ 29.2 billion.Annual sales also reached $ 100 billion for the first time in the history of the United States. </p> <p> Sales of commercial clouds increased by 53% to $ 6.9 billion, the company said in slides posted on its website.The gross margin of this activity is expanded by 6 percentage points to 58% Microsoft has improved its profitability customers, which allows them to manage their services more efficiently and spread costs among a larger number of customers. With rising demand in the cloud, Microsoft also said that it would continue to invest. Hood said capital spending would increase over the next fiscal year, but at a slower pace. During the fourth quarter, the company also agreed to acquire the GitHub Inc. code share site for $ 7.5 billion in shares, with the goal of speeding up moves. Michael Strencer, director general of investor relations, said in an interview, without providing details. According to a survey conducted by Morgan Stanley with 100 US and European IT managers, 34% of respondents said they were considering buying a higher level of Office 365 software in the next. at two years old. Those who use or plan to use Azure have grown more than 70%. Bernstein found that 62% of CIOs reported using Azure in June, up from 50% just over a year ago. This compares to 60% for the Amazon Web Services market leader and 23% for the Google cloud. The latest Synergy Research Group survey indicates that Microsoft has gained shares faster than Amazon. </p> <p> Still, the last quarterly leap in Azure's revenue has slowed relative to the 93% growth recorded by Microsoft over the previous period. Market share surveys generally show that Azure is far behind Amazon, which is at least three times larger according to this measure. The two companies are adding new cloud services and are conquering customers while Google, the number 3 US, is trying to catch up. Earlier this week, Microsoft announced that Walmart Inc., a competitor of Amazon, has signed a five-year agreement with Azure and Office 365. </p> <p> Sales of intelligent cloud products – Azure and server – have increased 23% to $ 9.61 billion. the average estimate of $ 9.07 billion from four badysts surveyed by Bloomberg. Productivity software, primarily office sales, increased 13% to $ 9.67 billion. Compared with the average estimate of $ 9.64 billion. </p> <p> While Microsoft reorganized its structure and reduced the efforts of its Windows PC operating system – once the company's flagship company – software sales continue to generate considerable revenue. This means that the company benefited as PC shipments rose for the first time in six years due to the strength of the business sector, which helped offset the continued decline in consumers, according to Gartner Inc. In the fourth quarter, the personal computing unit grew 17 percent to $ 10.8 billion, compared with $ 10.5 billion on average. </p> <p> Surface equipment sales increased 25% over last year and gaming revenue increased 39%. Xbox Console For the first time, revenue generated by games for the year exceeds $ 10 billion </p> <p>. While the United States applies tariffs on certain foreign products and their countries impose taxes, Microsoft is monitoring the issue. "We operate on a global scale, so whenever there are trade wars, so to speak, we do not like to see them," he said. "In China, we have good partnerships with companies and we are always looking for ways to grow, there is nothing to worry about right now, but we are watching it closely." </p> <div clbad= First release: Fri, 20 Jul 2018. 08 34 PM IST
[ad_2]
Source link

Tags

Powered by https://naaju.com/india | Designed by Naaju
© Copyright 2024, All Rights Reserved